A Framework for Crowdfunding Platforms to Match Services between Funders and Fundraisers
International Journal of Industrial Distribution & Business, 2019
8 Pages Posted: 20 Oct 2020
Date Written: April 28, 2019
Purpose - A framework is suggested in this paper which will help crowdfunding platforms to match projects according to expectations of funders, leading to successful campaigns and thus increase the profitability of the crowdfunding platform.
Research design, data, and methodology – The paper is theoretical and conceptual in nature which proposes a model for crowdfunding platforms to match expectations of crowds with project fundraisers.
Results - Crowdfunding platforms are going through incremental innovations in order to match customer (funders and fundraisers) expectations. Leading crowdfunding platforms like Kickstart holds benchmark for other players in the market but the secret of success lies in matching quality projects with the appropriate funders. Crowdfunding platforms have to securitize the projects and allow only quality projects but also provide a wide range of options for funders. Thus, to manage this trade-off between quality and quantity of options, a framework is proposed.
Conclusions - Crowdfunding platforms have to adopt a model which will help them in providing a perfect match between crowds and fundraisers. Each member of the crowd and every project will be assigned a category and rating based on the past records. Securitization of projects will help to entertain only demanded projects which will reduce the number of failing campaigns.
Keywords: Crowdfunding, Fundraisers, Funders, Fintech, Services.
JEL Classification: G40, P20, P43
Suggested Citation: Suggested Citation